Already, New York State has stepped up energy conservation efforts to help weather an electrical power shortfall in the next three years that will center on New York City.

They hope to duplicate the success of California, which managed to cut electricity consumption nearly 7 percent to help avert blackouts last summer through efficiency and conservation.

The New York State Energy Research and Development Authority is spending $150 million this year on programs expected to conserve 426 megawatts (MW), or about 6 percent, of a projected 20-percent rise in power demand by 2005. One megawatt is enough electricity to power 1,000 homes.

The programs aim to replace wasteful appliances, make buildings more energy efficient and reduce consumption at peak load times. On a smaller scale, they also promote renewable energy production, namely wind power plants.

"We could see the writing on the wall and we were concerned about supply, particularly in the New York City area," Gary Davidson, spokesman for New York's energy development authority, said.

"We knew that without an abundance of new power online we needed measures to cut demand," Davidson said.

With energy prices already rising amid violence in the Middle East, the last thing consumers need is a supply shortfall at home.

According to the New York Independent System Operator, which runs the state's high-voltage electric transmission system, New York must add 7,100 MW of generating capacity by 2005 to avoid shortages as economic growth fuels soaring electricity demand.

That's an increase of almost 20 percent, almost half of it for New York City, where the World Trade Center disaster did not cause a significant drop in power consumption.

CONSERVATION PART OF THE SOLUTION

New York State made conservation a part of the solution and set up the Energy Smart program to encourage demand reduction.

Its highlight is the $10 million Peak-Load Reduction Program, which last summer cut 100 MW of demand, mostly in New York City. Officials hope to double that this year by encouraging industrial users to use various strategies such as switching to their own power generators at peak load times.

The agency is offering several consumer incentive programs, including the popular "Keep Cool" program that encourages residents to replace their inefficient appliances.

After only recycling 700 room air conditioners in 2000, the first year of the program, "Keep Cool" took 41,400 old units off the grid last year. Officials expect to spend $6 million to more than double that to 80,000 to 100,000 units this year.

People who turn in an old air conditioner and replace it with an efficient one will get a $75 rebate from the state. The old unit is destroyed, keeping it off the second-hand market.

The Energy Smart program earmarked $30 million for loans and grants promoting energy efficiency in building designs.

According to environmental group National Resources Defense Council, if all U.S. commercial buildings were energy efficient, U.S. annual energy use would drop by 100,000 MW.

The New York State Energy Research and Development Authority will use another $10 million to support wind power plants of at least 5 MW of capacity.

"There are a few states that are leading the way on energy efficiency and on renewable energy: California, Massachusetts, New York," said Gary Epstein, president of consulting firm Energy and Resource Solutions. "A lot of the programs are still new, but they're moving and they're gaining momentum."

THE CALIFORNIA LESSON